Deregulation and Hybrid capital: Difference between pages

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imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Create page. Source: KPMG webpage https://home.kpmg/uk/en/home/insights/2020/02/hybrid-capital-instruments.html and UK Gov https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/796328/Hybrid_capital_instruments.pd)
 
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The removal or relaxation of the barriers or rules that have previously restricted the scope of securities trading and the nature of the operations undertaken by financial institutions.
''Law - financial reporting - tax - credit rating''.
 
Hybrid capital instruments have features both of equity and of debt.
 
 
Relevant equity features may include:
*Entitling the issuer to defer or cancel coupon (interest) payments.
*Being treated as equity for financial reporting purposes.
*Being regarded as equity for credit rating purposes.
*Qualifying as regulatory capital, especially under the regulatory capital rules for banks and insurance companies.
 
Relevant debt features may include the tax-deductibility of coupon payments.




== See also ==
== See also ==
* [[An introduction to equity capital]]
* [[Bank supervision]]
* [[Capital]]
* [[Capital instrument]]
* [[Capital employed]]
* [[Capital structure]]
* [[Common equity]]
* [[Common stock]]
* [[Compound instrument]]
* [[Coupon]]
* [[Credit rating]]
* [[Debt]]
* [[Distribution]]
* [[Dividend]]
* [[Equity]]
* [[Equity instrument]]
* [[Financial instrument]]
* [[Financial reporting]]
* [[Hybrid debt]]
* [[Kay Review]]
* [[Liabilities and equity]]
* [[Mezzanine]]
* [[Ordinary shares]]
* [[Own funds]]
* [[Regulation]]
* [[Regulation]]
* [[Security]]
* [[Share capital]]
* [[Total Loss Absorbing Capacity]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Financial_products_and_markets]]

Revision as of 12:10, 26 November 2020

Law - financial reporting - tax - credit rating.

Hybrid capital instruments have features both of equity and of debt.


Relevant equity features may include:

  • Entitling the issuer to defer or cancel coupon (interest) payments.
  • Being treated as equity for financial reporting purposes.
  • Being regarded as equity for credit rating purposes.
  • Qualifying as regulatory capital, especially under the regulatory capital rules for banks and insurance companies.

Relevant debt features may include the tax-deductibility of coupon payments.


See also